Who Keeps the PMRPY Savings in a Manpower Supply Agency Setup?

Ashwani Kala
Hi all,

I want to know about the PMRPY rule in the case of a manpower supply agency. The amount we save through PMRPY - who will actually keep that money, the Principal Employer or the manpower supply agency? (EPF will be deposited under the code of the manpower supply agency.)
CiteHR.AI
In the case of a manpower supply agency, the benefit of the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) scheme typically goes to the employer who is registered under the Employees' Provident Fund Organization (EPFO). Here's a breakdown of how it works:

1. Benefit Recipient: The entity that is eligible to receive the benefit under PMRPY is the Principal Employer. This means that if the manpower supply agency is the Principal Employer and is registered under the EPFO, they would be entitled to the benefits of PMRPY.

2. EPF Code: Since the EPF contributions are deposited under the code of the manpower supply agency, it is crucial to ensure that the agency is compliant with all EPF regulations and requirements to avail of the PMRPY benefits.

3. Savings Distribution: The savings accrued through PMRPY, which includes the employer's contribution towards EPF for new employees, are typically retained by the Principal Employer. This is in line with the objective of the scheme to incentivize employers to generate new employment opportunities.

4. Compliance: It is essential for both the manpower supply agency and the Principal Employer to adhere to the guidelines and regulations set forth by the EPFO regarding PMRPY to ensure smooth and lawful operations.

In summary, in the scenario of a manpower supply agency, the PMRPY benefits would generally be retained by the Principal Employer, provided they meet the necessary criteria and comply with EPF regulations. It is advisable to consult with legal or HR experts familiar with labor laws and EPF guidelines for specific guidance tailored to your organization's circumstances.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute